First of all, if xml, extract the device description line, considering it as such, and then match the desired line, in this case green.
$x = [xml] (gc .\test.xml)
$x.deviceDescription -match "green"
If you do not want to go this route, you will need to use a flag ?s- singleline or dotall, which will * correspond to newline characters:
$x = [IO.File]::ReadAllText("C:\test.xml")
$x -match "(?s)<deviceDescription>.*green.*</deviceDescription>"
, , , .*?, . , , , .